LCD Panel Makers Expect Demand To Recover in Q4

Sharp’s prediction last year that the TV market will reach 147 million units in 2010 with LCD TV taking the lead over other technologies grabbing 87% of the market – still stands intact. However, the LCD monitor industry lately has recorded a disappointing performance, especially during the first half of fiscal ’08. Nevertheless, LCD panel makers, according to Digitimes – remain optimistic that the traditional peak season will boost the shipments in the fourth quarter of the current year.

Using the local Taiwan market as an example, LCD monitor vendor ViewSonic recently commented that demand ratio between the first and second half of the year is about 45:55, and as the market moves into the traditional peak season, shipments are expected to rebound.

Samsung SyncMaster 245BW“The visual technology leader – ViewSonic, admitted that shipments in the second quarter of this year were down from the same period last year in the local Taiwan market, falling from 340,000-370,000 units to about 300,000 units. In the fourth quarter however, demand may surge due to delayed purchases from the previous two quarters, as well as back-to-school demand in September, the China National Day in October, and the holiday season at the end of the year, the market sources added”.

According to industry projections – in 2010, demand for LCD TV from Europe will total 36 million units while demand for the North America market will grow to 33 million units.

Global LCD-TV panel shipments are expected to reach 181.1 million units by 2011.

The factors driving the panel market over the 100-million-unit mark in 2008, consist in falling prices for both panels and LCD-TVs (in the local Taiwan market for example, panel prices dropped about US$10 in July), transition to digital television, performance and resolution improvements and the Summer Olympics, which should spur TV sales especially in China. And since in the China-subject, according to The Commercial Times, one of Taiwan’s top business newspapers, Taiwan’s economics ministry said, that it would lift a rule that prohibits local display makers from making seven-inch panels in China as a first step, and then allow them to open 5.5-generation manufacturing factories there.

This is seen as a first step of Taiwan’s government lifting the ban on producing LCD panels in China.

About Ron Haruni 1036 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

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